This legislation requires the Federal Communications Commission (FCC) to initiate a rulemaking proceeding within 180 days of enactment to establish a vetting process for applicants seeking new high-cost universal service program funding awards. This "covered funding" specifically targets the deployment of broadband-capable networks and the provision of supported services over those networks. Under the proposed rules, the FCC will only award funding to applicants who can demonstrate sufficient technical, financial, and operational capabilities , along with a reasonable business plan, to deploy the proposed network and deliver services. The Commission will evaluate these proposals against reasonable and well-established technical, financial, and operational standards, including those used for broadband availability reporting, and consider the applicant's history of compliance with other government broadband funding programs. Furthermore, the FCC must establish penalties for pre-authorization defaults, setting a minimum of $9,000 per violation and generally requiring the base forfeiture to be at least 30 percent of the applicant's total support.